Why is the digital gold BUY price different from the SELL price? Why is it higher?
SafeGold buys international grade bullion from institutional suppliers and sells this to consumers. When customers sell gold back to SafeGold, they sell it back to institutional participants in the wholesale bullion market, where the buyback rate is lower than the selling rate – this is referred to as the buy-sell spread. In addition to the buy-sell spread in the commercial bullion market, GST is added to the buy price, but it is not levied on any sell transactions. Further, there are charges incurred on the payment gateway, trustee, insurance and custodian fees which also contribute to the difference in buy and sell price.